What the Chevy Volt Will (and Won't) Do For GM

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Thread: What the Chevy Volt Will (and Won't) Do For GM

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    What the Chevy Volt Will (and Won't) Do For GM

    What the Chevy Volt Will (and Won't) Do For GM
    US News & World Report
    December 17, 2010
    by Rick Newman


    Four years after a fanciful "concept car" revealed General Motors's plans for an electric-powered, plug-in vehicle, the Chevrolet Volt is finally arriving in showrooms. The next challenge will be spotting one on the road.

    The Volt is one of the most hyped cars in history, and given GM's marketing muscle, that's an achievement in itself. The automotive press is buying it, so far. Motor Trend named the Volt its 2011 Car of the Year, saying that it's a "game-changer" and "an investment in the long-term future of automaking in America." Green Car Journal dubbed the Volt Green Car of the Year, thanks to fuel efficiency that's the equivalent of 60 miles per gallon. That eclipses every major production car except the new Nissan Leaf, an all-electric hatchback that gets the equivalent of 93 mpg. No doubt the gee-whiz Volt will rake in a few more awards over coming months.

    It's clearly a triumph for GM, which kept the Volt alive and on schedule while killing four entire divisions and making other severe cuts to survive its 2009 bankruptcy filing. Yet the jury is still out on electric cars, which remain prohibitively expensive for most consumers and come with tradeoffs that undermine their usefulness. So here's a cheat sheet listing what the Volt will truly accomplish for GM, and where the hype will fall short.

    What the Volt WILL do for GM:
    • Restore some luster.
    • Draw people to showrooms.
    • Provide a technology edge.

    What the Volt WON'T do for GM:
    • Boost sales.
    • Earn profits.
    • Push it far ahead of competitors.

    Full article at link.

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    6.2 Liter LS3 V8 ral1960's Avatar
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    Re: What the Chevy Volt Will (and Won't) Do For GM

    The Volt allows them to sell more trucks and SUVs without increasing their CAFE fine. On those vehicles, GM makes money.

    That's why they started it and kept it going through bankruptcy.

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    Re: What the Chevy Volt Will (and Won't) Do For GM

    Quote Originally Posted by ral1960 View Post
    The Volt allows them to sell more trucks and SUVs without increasing their CAFE fine. On those vehicles, GM makes money.

    That's why they started it and kept it going through bankruptcy.
    Good point, and an important one too.

    So in a way it will boost profits of other money making vehicles if more people are lured into GM Dealers and buy other more profitable vehicles. And less CAFE fines equals more money.

    It is also already ahead of the competition as far as I can tell. Hopefully it be improved and more refined as battery technology improves too.

    So in a round about way it is helping even though the profit margin on it is not as great as the trucks and suv's. But that should improve too as more are built..........hopefully.
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    Re: What the Chevy Volt Will (and Won't) Do For GM

    Quote Originally Posted by ral1960 View Post
    The Volt allows them to sell more trucks and SUVs without increasing their CAFE fine. On those vehicles, GM makes money.

    That's why they started it and kept it going through bankruptcy.
    It's worked very well for Toyota.
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    Re: What the Chevy Volt Will (and Won't) Do For GM

    Quote Originally Posted by SS_Frank View Post
    It's worked very well for Toyota.
    That's because much of the profit from those guzzlers was immediately invested into hybrid development.

    Little profit isn't available for that anymore. In fact, the entire industry has changed a lot since then. The market is quite different now. GM has other financial obligations too.

    Lastly, don't forget that mainstream acceptance was achieved prior to tax-credits being available. Maintaining sales volume above 60,000 happened with only a deduction and an appreciation for the PZEV emission-rating.
    .

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    Re: What the Chevy Volt Will (and Won't) Do For GM

    Can GM sell enough Volts to really make a dent in CAFE?

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    Re: What the Chevy Volt Will (and Won't) Do For GM

    What the Volt WILL do for GM:
    Restore some luster.
    Draw people to showrooms.
    Provide a technology edge.
    What the Volt WON'T do for GM:
    Boost sales.
    Earn profits.
    Push it far ahead of competitors.


    -----------

    Well if GM sells the volt it will push sales upward...

    and for as long as it takes competitors to create something that can go 35 to 50 miles on one charge..and then rely on its gasoline powerplant to allow 300 miles between fill ups or recharges...GM is ahead of the competition..

    I expect other companies to produce similiar vehicles in short order ...as soon as they can..

    I drove the volt and I was truly impressed with how quiet it was, how nice it drove and how seamless it was even though it was totally new technology.

    GM showed how great it is with the introduction of the production volt..

    Just my opinion of course..
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    Re: What the Chevy Volt Will (and Won't) Do For GM

    GM will sell all volts and Amperas it will produce, not doubt.

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    Re: What the Chevy Volt Will (and Won't) Do For GM

    The Volt will be a halo car that enhances GM's green credibility, will increase floor traffic, and will be a jumping off point to numerous hybrids that go less than 40 miles on a charge while upping CAFE by a considerable margin. These hybrids may make V8 production workable, which would greatly enhance truck, suv and large sedan sales.
    And when push comes to shove, GM will be able to say that they have done everything they could to get customers into more efficient transportation and since their CAFE numbers are too low, it's because that is what the market wants. This will be a good argument for when CAFE gets limited to the current 35.5 mpg, and which will mean that we can keep performance cars that many, (but not most) people want, especially those here on GMI.

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    Re: What the Chevy Volt Will (and Won't) Do For GM

    The article seems kinda down on the Volt IMO. I think the Volt is a great vehicle, a game changer and will help with GM's imagine it won't do much without a complete line up of great vehicles. Just keep on making great vehicles GM that complement the Volt.

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    Re: What the Chevy Volt Will (and Won't) Do For GM

    I don't get the part where it says "draw people to show rooms" but it also says it wont "boost sales". It's a little contradicting. In sales you have something called walk ins which make up the bulk of auto sales, cold calling and other forms are N/A here. All sales start with prospects and if you have more prospects walking in the door that should boost sales.
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